Credit cards not only allow us to make
desired purchases despite when we are short on reserves in our savings, but
they also ensure that we increase the value of those purchases by providing benefits
such as cashback, reward points, special discounts, and other perks at no
additional cost if we pay off our total outstanding in full on time during each
billing cycle. While many of you may have been using this payment method for
some time, you may not be aware of a few key credit card facts. Let's take a
look at a few of them to help you make better judgments.
One of the lesser known facts is, there are
many credit cards that come with zero annual charges. For obvious reasons, when
looking for a new credit card, most of us gravitate toward zero annual fee
options. However, these no annual fee cards are frequently the most basic
varieties with only a few benefits, whereas cards with annual fees come with
premium perks and privileges. Complementary travel insurance upgraded loyalty
programmes, exclusive discounts at reputable hotel and restaurant chains, and
select e-commerce websites are just a few of the perks. When used wisely, the
value proposition of such cards' incentives can easily outweigh the membership
fees.
Most of you are probably aware that
large-ticket items made using credit cards, such as electronics, appliances,
and furniture, can be converted to EMIs at the time of purchase. Credit cards also
allow you to convert qualified post-purchase expenses into EMIs to make them
more affordable. This is a very useful function, however one should make sure
they understand all applicable charges, if any, before using the EMI options.
Most essential, make sure you pay all of your bills on time to prevent
additional fees. Paying your credit card fees late comes with its set of
penalty charges, so to avoid that make sure your pay your electricity bills on
time.
Based on their assessment of the user's
creditworthiness and income, banks and lending institutions determine the
applicable credit limit associated with each credit card account. If you
believe your card credit limit is too low, you can contact your bank and
request an increase; nevertheless, the final decision will be made by your
bank. Having a high credit limit, however, does not grant you permission to
spend recklessly with your credit card. To ensure that your dues are paid in
full each month, you must use your card responsibly.
Read Also - Where Can I Use Bajaj Finserv EMI Card?
Many banks and lending institutions also
offer pre-approved loan offers on your credit card. They are frequently
extended by banks to selected credit card holders. These unsecured loans may
have interest rates ranging from 12% to 30% p.a., and their EMIs are frequently
added to the total monthly card dues and are usually tied to the credit limit
of the card. However, because such loans are pre-approved, they can be
disbursed swiftly, making them excellent borrowing options in any type of
financial emergency.
The Bajaj Finserv co-brand credit is one of
the top selling credit cards that comes with a host of benefits. Also, the
application process for the Bajaj Finserv cobrand credit card is simplified
with the mobile app. You can easily convert your high-end purchases to simple
and affordable EMIs with one swipe of your credit card. You can also avail an
instant personal loan for up to 90 days at 1.16% interest on your credit limit.
You can easily enjoy contactless payments of up to Rs. 5000 with a simple tap
of your card. Also, you can withdraw cash from any nearby ATM at no interest
for up to 50 days. You can easily manage your credit card expenses and keep
track of your due dates with the mobile app.
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